Japanese Market Sharply Higher

(RTTNews) - The Japanese stock market is trading sharply higher on Wednesday, extending the sharp gains in the previous session, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is moving well above the 67,450 level, with gains across most sectors led by financial and technology stocks.

The benchmark Nikkei 225 Index is up 1,248.12 or 1.88 percent at 67,480.31, after touching a high of 67,592.20 earlier. Japanese stocks ended sharply higher on Tuesday.

Market heavyweight SoftBank Group is gaining more than 3 percent, while Uniqlo operator Fast Retailing is losing almost 3 percent. Among automakers, Honda is edging up 0.3 percent and Toyota is also edging up 0.1 percent.

In the tech space, Advantest is surging more than 6 percent, Tokyo Electron is gaining more than 3 percent and Screen Holdings is adding almost 2 percent.

In the banking sector, Mizuho Financial is advancing more than 3 percent, while Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are gaining more than 2 percent each.

Among the major exporters, Mitsubishi Electric is gaining almost 3 percent, Canon is edging up 0.4 percent and Panasonic is advancing almost 3 percent, while Sony is losing almost 1 percent.

Among other major gainers, Mitsui Kinzoku, Taiyo Yuden and Kioxia Holdings are soaring almost 11 percent each, while Resonac Holdings is jumping more than 9 percent and Sumitomo Electric Industries is surging more than 8 percent. Renesas Electronics, Ibiden and Furukawa Electric are advancing almost 8 percent each, while Murata Manufacturing and Disco are gaining more than 6 percent each. Fujikura and Fuji Electric are adding more than 5 percent each, while Mitsubishi and Tokuyama are up almost 5 percent each.

Conversely, Mercari, Recruit Holdings and Takashimaya are tumbling more than 5 percent each, while J. Front Retailing and Oriental Land are slipping almost 5 percent each. Toho, M3 and ZOZO are declining more than 4 percent each, while BayCurrent and Dentsu Group are losing almost 4 percent each. CyberAgent, Nomura Research and Keisei Electric Railway are slipping more than 3 percent each, while BANDAI NAMCO is down almost 3 percent.

In economic news, Japan posted a merchandise trade deficit of 406.906 billion yen in June, the Ministry of Finance said on Wednesday. That missed forecasts for a shortfall of 120.0 billion yen following the 391.8 billion yen deficit in May.

Exports jumped 19.3 percent on year to 10.929 trillion yen - exceeding expectations for an increase of 18.6 percent and up from 16.8 percent in the previous month. Imports spiked an annual 25.4 percent to 11.335 trillion yen versus expectations for an increase of 21.0 percent and up sharply from 12.5 percent a month earlier.

In the currency market, the U.S. dollar is trading in the lower 163 yen-range on Wednesday.

On the Wall Street, stocks showed a strong move back to the upside during trading on Tuesday after trending lower over the past few sessions. The major averages all moved notably higher, with the Nasdaq leading the charge.

The major averages finished the day off their highs of the session but still firmly positive. The Nasdaq jumped 329.13 points or 1.3 percent to 25,837.21, the S&P 500 advanced 65.92 points or 0.9 percent to 7,509.20 and the Dow climbed 385.38 points or 0.7 percent to 52,224.64. The major European markets all also moved to the upside on the day. While the German DAX Index advanced by 0.7 percent, the U.K.'s FTSE 100 Index climbed by 0.6 percent and the French CAC 40 Index rose by 0.3 percent.

Crude oil prices spiked on Tuesday as the U.S. attacked Iran for the 10th straight day, reinforcing supply concerns due to the Strait of Hormuz crisis. West Texas Intermediate crude for August delivery was up $1.77 or 2.13 percent at $85.00 per barrel.